The sale will mean the exit of Ridley from the SA market. Photo: Ridley
AUSTRALIA’S largest stockfeed miller, Ridley Corporation, has agreed to sell its Wasleys Feedmill in South Australia to poultry meat producer Baiada for $22 million.
In a statement released to the ASX on Wednesday, the company said the sale was expected to be completed on June 30.
Ridley managing director and chief executive officer Quinton Hildebrand said the mill would support Baiada’s planned expansion in the SA market.
“We understand Baiada’s desire to own the feedmill as part of their expansion plans in South Australia, and Ridley looks forward to ongoing supply arrangements with Baiada in other regions,” Mr Hildebrand said.
“The sale represents a fair price for the Wasleys Feedmill and the proceeds will further strengthen the Ridley balance sheet and support our growth ambitions.”
The Wasleys Feedmill delivered Ridley an Earnings Before Interest, Taxes, Depreciation, and Amortisation of $3.5M in the past twelve months.
Over 90 percent of the volume produced at the site was sold to Baiada.
An drone shot of the Wasleys site after it was rebuild after a fire in 2015. Photo: Ridley
Ridley said the sale will deliver a pre-tax profit which, net of transaction costs and other costs (including the one-off restructuring costs announced in February for the Business Reset).
It is expected to result in a reported gain from net individually significant items of approximately $4M EBITDA for the 2025 financial year.
“The Business Reset is on track to deliver the targeted annual cost savings of $5m EBITDA for FY26 onwards, helping to offset the reduced earnings post the sale of Wasleys,” the company said in an ASX statement.
“Trading conditions in FY25 H2 are being impacted by lower selling prices in the Ingredient Recovery business, particularly with avian influenza related export market restrictions on poultry meals and oils, and a one-off impact of lower Packaged Product sales volumes related to the recent weather events in Queensland.”
Wasleys was Ridley’s only remaining feedmill in South Australia after the company closed its Murray Bridge site in 2019 due to sustained losses.
Production from Murray Bridge was consolidated at Wasleys following the closure.
The Wasley Mill was partially rebuilt after a bushfire swept through the region in November 2015.
After the sale, Ridley will continue to operate 13 mills with eight in Victoria, four in Queensland, three in New South Wales and one in Tasmania.
Source: Ridley Corporation
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